Bitcoin faces bearish signals as it struggles to maintain the $60K mark, with traders predicting a potential drop to $55K.
Summary
- Bitcoin's daily chart shows a bearish trend with an RSI of 34, an ADX of 36.9, and a death cross EMA setup, indicating a potential decline.
- The support level at $58,035 held during a recent dip, but its future strength is uncertain as traders foresee an 80% chance of a price drop.
- Despite gains in the broader market, Bitcoin's price remains significantly down from its all-time high, reflecting ongoing bearish sentiment.
In the financial markets today, Wall Street saw positive movements, with the Nasdaq rising 1.4% and the S&P 500 up by 0.8%. This uptick came after the Supreme Court rejected former President Trump's attempt to dismiss Federal Reserve governor Lisa Cook and a ceasefire between the U.S. and Iran alleviated tensions.
However, Bitcoin has not benefited from this positive momentum. The cryptocurrency has plummeted approximately 53% from its peak of $126,198 in October 2025 and has experienced two consecutive quarterly losses, reminiscent of the downturn in 2022.
The economic landscape is also challenging for Bitcoin. In June, spot Bitcoin ETFs saw around $4 billion withdrawn, eliminating crucial institutional support that had previously helped stabilize prices. The Federal Reserve, led by Kevin Warsh, continues to maintain a hawkish approach, with markets anticipating an 80% chance of a rate hike in December.
Bitcoin Price Analysis: Current Trends
On Monday, Bitcoin opened at $59,473, dipped to a low of $58,801, and then rebounded to approximately $60,104, marking a 1.06% increase. This recovery is notable as the $58,035 level is a key support line that has begun to attract buyers.
The Average Directional Index (ADX) is currently at 36.9, signaling a strong bearish trend, while the Relative Strength Index (RSI) at 34 indicates oversold conditions, suggesting potential for a bounce but also continued downward pressure.
Both the 50-day and 200-day exponential moving averages are positioned significantly above the current price, further confirming the bearish outlook. The 50-day EMA is around $66,913, while the 200-day EMA is approximately $76,517. The formation of a death cross, where the 50-day EMA falls below the 200-day EMA, signals persistent downward trends.
Market sentiment is reflected in predictions from Myriad, where traders see an 80% chance of Bitcoin falling to $55,000, rather than rebounding to $84,000. This pessimistic outlook poses challenges for bullish traders.
Currently, Bitcoin is in a compression zone, trading between $59,200 and $60,400. A break below $59,200 could invalidate short-term trading strategies, which aim to capitalize on the current price range. If the $58,035 support fails, the next substantial support is at $55,528, aligning with the bearish predictions.
For those looking for signs of recovery, reclaiming the Fibonacci Golden Zone between $62,644 and $63,732 would be crucial, along with breaking above the descending trendline around $65,000 and the 50-day EMA at $66,913.
